In November, pending home sales increased 7.3 percent from October and 5.9 percent from November 2010, their highest level in 19 months, according to the National Association of Realtors. Lawrence Yun, NAR chief economist, said, “November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead.” U.S. foreclosures also decreased 14% from last November. The positive news is slightly dampened by other data showing that home prices were down 3.4 percent for the year as of October.
The glimmer of hope in recent numbers such as these prompts the question of whether it’s not too early to invest in a housing recovery. One prominent investor doesn’t seem to think so. Arnold Schneider
of $1.7 billion, deep value-oriented Schneider Capital Management, has two home builder stocks in his top 15 holdings. Schneider Capital has a disciplined investing approach, seeking new investment ideas, conducting rigorous research, and investing for the long term. Continue Reading »